The tourism sector in Dubai expects to resolve in two years the lack of hotel rooms, from which the Emirate has been suffered for a year, according to Al-Bayan newspaper. As part of the construction boom that Dubai is undergoing today, 25 hotel projects are to be implemented between 2005 and 2007. These projects will add more than 7,000 hotel rooms and hotel apartments to the current capacity, which does not surpass 26,000 hotel rooms and 11,000 apartments. It should be mentioned that Dubai's hotel sector boasts the largest occupancy rate in the Middle East, according to Ernst and Young's estimations.

The total investments in 12 hotel projects, already announced, amounted to 8.5 billion Emirate Dirhams ($2.3 billion), while there are expectations for the entry of 9 new brand names to the sector during the current year, which will add approximately 3,400 rooms and hotel apartments.

The new hotels will be built in various regions all over the Emirate, from the Nakheel projects on the Gulf, through Emaar projects in Jumeira Beach Residence adjacent to the Gulf and in the heart of the new city. In addition, there are new projects in Dubai Festival City, in Dubai Khur Club, in Sheikh Zayd Street, and in new areas, such as Jadaf Dubai region, which will turn into dwelling, commerce and entertainment area, in addition to Al-Hamariyya and the city center.